Reason Writers Around Town: Shikha Dalmia on the UAW Ringing its Death Knell by Extracting $12,500 Bonuses From Government Motors
The UAW managed to extract $12,500 in bonuses for hourly workers in the four-year-contract deal it just negotiated with Government Motors. It is congratulating itself for protecting worker wages even in these tough economic times. But Reason Foundation Senior Analyst Shikha Dalmia notes in her column at The Daily that wage-protection for UAW members comes at the price of job jeopardization for everyone else in Michigan. Indeed, thanks to the UAW's history of bidding up labor prices, Michigan jobs and economy have been steadily going down the potty for decades.
But now, unions are facing a political backlash. Even as the UAW celebrates its triumph, a right-to-work movement is brewing in the union capital of the country that poses a serious threat to its existence.
"The Great Depression launched the labor movement, which promised prosperity and jobs," she notes. "But the Great Recession might spell its end because it can't deliver, the jubilation about the new contract notwithstanding."
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